- OIL & GAS
Net sales for the fourth quarter of fiscal 2012 were $635.3 million, an increase of 19.1% over net sales of $533.2 million in the fourth quarter of fiscal 2011. Average daily sales for the period grew 10.4%.
Excluding non-recurring costs of $1.2 million associated with the previously announced co-location of the Company’s headquarters in Davidson, North Carolina, adjusted operating income for the fiscal 2012 fourth quarter was $109.2 million, or 17.2% of net sales, compared to $93.9 million, or 17.6% of net sales in the same quarter a year ago. GAAP operating income for the fiscal 2012 fourth quarter was $108.0 million.
Excluding the after tax effects of these non-recurring costs, adjusted net income for the fourth quarter of fiscal 2012 rose 17.2% to $69.7 million, or $1.11 per diluted share (based on 62.5 million diluted shares outstanding), compared to $59.5 million, or $0.93 per diluted share, a year ago (based on 63.5 million diluted shares outstanding). GAAP net income for the fourth quarter of fiscal 2012 was $68.9 million, or $1.09 per diluted share.
For the 2012 fiscal year, net sales increased 16.5% to $2.36 billion from $2.02 billion in fiscal year 2011. Average daily sales for the year grew 14.3%.
Excluding the non-recurring costs, adjusted operating income for fiscal 2012 was $413.4 million, or 17.5% of net sales compared to $349.8 million, or 17.3% of net sales, in fiscal 2011. GAAP operating income for fiscal 2012 was $412.2 million. Excluding the after tax effects of the non-recurring costs, adjusted net income for the 2012 fiscal year rose 18.7% to $259.8 million, or $4.10 per diluted share (based on 62.8 million diluted shares outstanding), compared to $218.8 million, or $3.43, a year ago (based on 63.3 million diluted shares outstanding). GAAP net income for fiscal 2012 was $259.0 million, or $4.09 per diluted share.
Based on current market conditions and taking into account the impact from the recent Hurricane Sandy, for the fiscal 2013 first quarter the company expects net sales to be between $576 million and $588 million. Excluding non-recurring costs related to the co-location of the company’s headquarters in Davidson, North Carolina, the company expects adjusted diluted earnings per share for the first quarter of fiscal 2013 to be between $0.98 and $1.02. GAAP diluted earnings per share are expected to be lower than the guidance by approximately $0.02 per diluted share for the first quarter of fiscal 2013, resulting from these non-recurring costs.
The company continues to expect approximately $7-10 million in non-recurring relocation costs, depending upon the number of associates who choose to relocate, to be incurred primarily in fiscal years 2013 and 2014. The midpoint of this guidance also reflects projected average daily sales growth of 6.7%, typical seasonal patterns in sales and margins and investment programs.
MSC reaches its customers through a combination of approximately 18 million direct-mail catalogs, 106 branch sales offices, 1,095 salespeople, the Internet and associations with some of the world’s most prominent B2B eCommerce portals. For more information, visit the company’s website at http://www.mscdirect.com.